2024-05-08 13:38
Employees in Texas typically owe a duty of loyalty or a fiduciary duty to their employers. That includes a duty not to divert corporate opportunities or engage in activities that benef… Read More
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Original Commentary on Texas Business and Employment Law
2024-04-29 14:36
Last week, the Federal Trade Commission (FTC) announced a new rule banning virtually all non-compete agreements, which is supposed to go into effect on August 21, 2024. Within hours of this… Read More
2024-04-17 16:23
Yesterday, the Federal Trade Commission announced that a special meeting will take place on April 23rd, next Tuesday, during which the commission members will vote on whether to ban non-comp… Read More
2024-03-07 14:55
Last year, a well-known bank in North Texas merged with another bank. Following the merger, it experienced a mass exodus of employees to a competing bank. A lawsuit ensued, in which the ban… Read More
2024-02-28 15:31
The federal court of appeals that oversees Texas recently ruled that a company that promoted a sale of its client, but did not cause the final sale, was still entitled to a commission on the… Read More
2024-01-22 16:09
Yes, if you are in Texas. There has been a lot of buzz about federal government banning all non-compete agreements (not likely to pass) and some states have actually outlawed such agreements… Read More
2024-01-10 13:18
The recent rule from the U.S. Department of Labor (DOL) lays out how employers should decide if their workers should be paid as W-2 employees or as 1099 contractors. This rule becomes effect… Read More
2023-10-24 14:42
Clients in litigation often ask what happens if the other side destroys relevant emails, documents, or other evidence crucial to proving their wrongdoing. A recent opinion from the Fifth Cir… Read More
2023-09-20 18:10
An employee recently posted on Reddit that his former employer demanded that he sign a non-compete agreement a month after he had been fired and found another job with a competitor.
Feeli… Read More
2023-09-11 14:06
Many major hospital chains in Texas require their physicians to sign non-compete agreements.
Despite all the talk about how the federal government is going to ban all non-compete agree… Read More
2023-09-07 13:41
What is a Temporary Restraining Order in a Non-Compete Case in Texas?
Temporary restraining orders in Texas (also knowns at “TROs”) are orders issued by courts that require e… Read More
2023-08-17 13:09
With all this talk about how the federal government is about to ban non-compete agreements, many might think they no longer need to worry about non-compete restraints in their contracts, but… Read More
2023-08-07 15:59
Introduction: Unpaid commissions and bonuses can be a frustrating situation for Texas employees who were promised compensation upon achieving certain goals. Fortunately, there are legal opti… Read More
2023-04-20 16:26
If you’re an employee in Texas and you’re bound by a non-compete agreement, you may wonder if you can argue that the agreement is “unfair” and win. The answer is yes… Read More
2023-04-12 15:01
Firing under-performing employees is part-and-parcel of running a successful business. Yet, I see many businesses botching the elementary steps and ending up with a legal fall-out that cost… Read More
2023-01-31 15:49
There is a pretty cool but not well-known tool that employees in Texas can use to find out if they are being underpaid. It’s a FREE wage database maintained by the Texas Workforce Comm… Read More
2023-01-24 16:08
Everyone has been talking about the FTC’s proposed non-compete ban in the last couple of weeks, and the majority of articles have focused on its benefits, such as increased employee mo… Read More
2023-01-05 17:22
Today, the Federal Trade Commission (“FTC”) issued a proposed rule that would ban non-compete agreements between employers and workers, including both employees and independent c… Read More
2022-11-30 17:29
Despite what you might see on Suits on another legal show, where lawyers get their clients out of bad contracts simply by fast talking or spitting out witty remarks, the reality is quite dif… Read More
2022-11-15 14:58
If 2023 is THE year that your business is going to maximize protections for confidential information, make sure you have the following four areas addressed:
Non-disclosure agreements (and… Read More
2022-11-14 17:54
A cease-and-desist letter typically demands that an employee or a business stop doing something. The letter often threatens a legal action if the recipient does not comply.
If you receiv… Read More
2022-10-28 16:22
When one company acquires another company, a lot of times, it will take on the old company’s contracts, including employment agreements with key employees. Some of those agreements ma… Read More
2022-10-25 15:54
Many companies have been announcing layoffs recently. Since every 5th person in the US workforce has a non-compete agreement (according to the Journal of Law & Economics), a lot of the w… Read More
2022-10-11 17:41
Many non-compete agreements in Texas often include employee non-solicitation restraints, which prohibit departing employees from soliciting their co-workers to leave with them. Whereas non… Read More
2022-09-29 16:01
A Texas Court of Appeals recently found that a contract that prohibited a company’s business partner from “accepting business” from a competitor was unenforceable.
In Texas… Read More
2022-09-19 14:24
Sixteen percent of Americans report earning money through an online gig platform. Gig work model started out with Uber, DoorDash, TaskRabbit and the likes in the 2010s, and has now expanded… Read More
2022-09-14 13:55
Trade secrets are a form of intellectual property. Their theft can lead to civil litigation against the alleged thief, as well as criminal prosecution by the government. However, whether ce… Read More
2022-09-12 13:29
A non-compete agreement or a non-compete clause prohibits employees from working for their employers’ competitors within a certain geographic area, for a certain period of time after t… Read More
2022-03-22 12:37
Recently, I had a chance to discuss the ins and outs of physician non-compete agreements with Pacific Companies at their Doc Lounge podcast. You can listen to it and download it here… Read More
2022-02-14 13:59
In most states, non-compete agreements are not illegal. Only four states prohibit non-compete agreements entirely: California, Oklahoma, North Dakota and Washington D.C.* The rest of the st… Read More
2022-01-31 15:36
According to some studies, one-in-three Americans has a side hustle, defined as a “job or occupation that brings in extra money beyond one’s regular job and main source of i… Read More
2022-01-18 15:43
A Texas federal court recently entered an injunction against a healthcare staffing company that works with federal agencies ordering it to (1) return information brought to it by a new hire… Read More
2021-12-07 16:30
On December 8, 2021, I will be presenting on Strategies for Handling Business Crises in Healthcare to the North Texas chapter of the Texas Medical Group Management Association (MGMA). I wil… Read More
2021-11-17 14:24
Last week, the Fifth Circuit Court of Appeals halted the implementation of OSHA’s Covid-19 vaccine mandate in Texas, Mississippi and Louisiana, but some employers choose t… Read More
2021-11-15 14:23
On Friday, the Fifth Circuit Court of Appeals extended its stay of the OSHA’s November 5, 2021 Emergency Temporary Standard (the “Mandate”) requiring employees of companie… Read More
2021-08-19 17:18
In reviewing hundreds of non-compete agreements a year, sometimes I have to break the news to business owners that their non-compete agreements are not going to hold up in court and need to… Read More
2021-08-05 14:05
In recent years, it has become quite common for surgeons to become part owners of free-standing ambulatory surgery centers in Texas. Often, their purchase of the ownership comes with the str… Read More
2021-06-28 16:19
In most states, non-compete agreements are enforceable in some shape or form, and many states enforce non-compete agreements regardless of whether an employee quit or was fired. See here… Read More
2021-03-26 02:16
All jokes aside, while getting out of non-compete restraints is not always possible, some of the most common ways that employees – and employers that want to hire them – can over… Read More
2021-03-22 14:17
I recently came across an article published by a consulting company advising medical practices that “as a rule of thumb” physician non-compete agreements should not extend beyon… Read More
2021-03-10 14:45
Mandatory employee vaccinations are not a new topic in the area of employment law. Over the years, through employees’ challenges to mandatory flu vaccines, a body of law emerged… Read More
2021-03-01 13:53
Whether a medical practice can bind a physician with a non-compete agreement depends on where the medical practice is located and which state’s law governs the contract.
Some stat… Read More
2021-02-22 14:52
The answer depends on which state the employee is in, as each state has its own laws regarding the enforceability of non-compete agreements. In a minority of states, an employee’s reas… Read More
2021-02-16 14:22
In January, the Fifth Circuit Court of Appeals ruled that the conditional certification step in collective actions brought under the Fair Labor Standards Act (FLSA) is not required. The rul… Read More
2021-02-05 15:58
States around the country vary in how they approach the enforcement of unreasonable non-compete agreements. While the majority of states allow their courts to “blue pencil” or re… Read More
2021-01-15 15:04
Recently, a Texas Court of Appeals addressed an issue that arises in almost every non-compete dispute in the Lone Star State – whether an employee has been provided confidential inform… Read More
2021-01-07 16:20
The Texas legislature will begin its bi-annual session on January 12, 2021, during which it will consider at least 26 employment bills that have the potential of affecting large swaths of em… Read More
2020-12-11 14:10
A Texas federal grand jury indicted a former owner of a therapist staffing company earlier this week on charges of participating in a price-fixing conspiracy with other staffing agencies to… Read More
2020-12-07 14:29
In Texas, client non-solicitation agreements are subject to the same rules as non-compete agreements. Therefore, they must be “reasonable” and “not impose a greater restra… Read More
2020-11-12 15:00
Earlier this year, the Court of Chancery of Delaware denied a company’s preliminary injunction because it had shared its alleged “trade secrets” with potential franchisees… Read More
2020-11-09 14:56
The enforcement of non-compete agreements around the country remains strong; however, courts are looking closer at whether employees will suffer “undue hardship” if their non-co… Read More
2020-11-02 15:06
A seller’s creative use of a promissory note recently backfired when a Texas Court of Appeals found that the seller failed to show that it actually lent the money described in the pro… Read More
2020-10-21 15:17
In Texas, a 5 to 10 year non-compete agreement related to a sale of business is the norm. Business owners often gloss over the terms of the non-competes when selling because the idea… Read More
2020-10-15 16:10
A recent decision from the Thirteenth Court of Appeals in Texas serves as a cautionary tale for Texas employers seeking to enforce their non-compete agreements. In this case, a compan… Read More
2020-10-05 20:11
The Fifth Circuit Court of Appeals recently clarified that non-employees do not have standing to sue under Title VII, even if they are an object of intentional retaliation.
Title V… Read More
2020-09-29 14:27
Many companies have been taking advantage of the economic turmoil caused by the pandemic to poach employee talent that they otherwise would not have been able to recruit or afford. Companie… Read More
2020-09-16 14:47
On September 25, 2020, I will be presenting a lunch-and-learn webinar on the above topic at 12 p.m. EST. Registration is available here.
The presentation will focus on the new challen… Read More
2020-09-14 15:14
Because marijuana is still an illegal substance under the federal law (despite the proliferation of the state laws to the contrary), obtaining trademarks, copyrights, or patents for marijua… Read More
2020-09-01 15:30
In May 11, 2016, the Defend Trade Secret Act (“DTSA”) became effective, giving employers the right to bring a trade secrets misappropriation claim in federal court. Prior to DTS… Read More
2020-07-25 14:33
In March, millions of workers were told overnight to start working from the comfort of their homes as the result of the COVID-19 pandemic. Since then, companies have been playing catch-up i… Read More
2020-06-08 12:40
Last month, a Texas Court of Appeals found that an employer who breached an employment agreement with an employee by changing his status to an independent contractor could not enforce that… Read More
2020-05-26 15:12
In the words of Heraclitis, “there is nothing permanent except change,” and we have certainly had a lot of changes in non-compete laws around the country in the last few years… Read More
2020-05-18 14:07
As of May 8th, the U.S. economy lost 20.5 million jobs and the unemployment rate reached 14.7%. Needless to say, there will be millions of people looking for jobs this year. Many of th… Read More
2020-04-13 13:27
Many companies in Texas have non-competition agreements with their employees, but not all companies enforce them. Some companies will sue the departing employees for violating non-comp… Read More
2020-04-09 17:42
The Center for Disease Control and Prevention (CDC) just issued an Interim Guidance that pertains to “critical infrastructure workers,” who may have been exposed to COVID-19.
CD… Read More
2020-04-08 18:21
The answer varies from state to state, as each state has its own rules regarding non-compete agreements.
In Texas, the reason for termination of employment – whether it was for cause… Read More
2020-03-28 16:54
It is fair to say that COVID-19 has affected every business in the United States, regardless of how small or large. The supply chains are straining, mass layoffs are in progress, and m… Read More
2020-03-25 15:21
Over the next several days, I am providing a break down of the new employment laws and guidances issued by various government agencies that Texas employers should know about when dealing wit… Read More
2020-03-24 15:59
Over the next several days, I am providing a break down of the new employment laws and guidances issued by various government agencies that Texas employers should know about when dealing wit… Read More
2020-03-21 17:19
Over the next several days, I will provide a break down of the new employment laws and guidances issued by various government agencies that Texas employers should know about when dealing wi… Read More
2020-03-16 15:06
On February 7, 2020, the American Medical Association submitted a letter to the Federal Trade Commission (FTC) concerning non-compete agreements in the workplace and urged the government age… Read More
2020-03-10 17:23
I recently wrote an expert analysis article for Law360 titled “Top Job Markets Show Noncompetes May Not Squash Growth,” examining and questioning the purported link bet… Read More
2020-01-27 15:35
Are non-compete agreements with physicians enforceable in Texas?
Yes, if they are written correctly.
What are the requirements for non-competes to be enforceable against physicians in… Read More
2020-01-07 13:52
An increasing number of companies are asking their employees to fill out and accept employment paperwork online through portals set up by employers precisely for that purpose. Such emp… Read More
2019-12-16 15:52
In Texas, courts can rewrite non-compete agreements to make them more reasonable. This process is called “reformation.” There are certain statutory limitations on whe… Read More
2019-12-09 14:31
While Texas allows non-compete agreements that are reasonable and meet the requirements of the Texas Covenants Not to Compete Act, the courts in this state will not enforce agreements with o… Read More
2019-10-29 13:02
“Hope for the best, but plan for the worst” should be every employer’s motto in handling the departure of employees. While most will leave without any problems, some… Read More
2019-10-24 14:30
If you have a winning idea about a product or a service, and you intend to share this idea with others in order to build a business, you must have legal agreements that prevent those persons… Read More
2019-10-21 14:06
Rocketlawyer.com has recently been advertising “free non-compete agreements” online. In fact, it is the very first advertisement that pops-up when you google “non-com… Read More
2019-10-14 14:43
Worldwide or global non-compete agreements with key employees can be enforceable where they are related to legitimate business interests, employees’ duties include a substantial exposu… Read More
2019-08-10 16:39
In Texas, non-compete agreements that relate to the practice of medicine must meet certain statutory requirements in addition to the consideration and reasonableness conditions discussed&nbs&hell…Read More
2019-07-12 14:37
The United Stated District Court for the Northern District of Texas has recently amended its local civil rules. The amended rules become effective September 1, 2019 and contain th… Read More
2019-06-17 13:38
For a non-compete agreement to be enforceable, an employer must give an employee something of value in exchange for his or her promise not to compete. In some states, just a promise of… Read More
2019-05-18 17:03
Many companies are currently racing to adopt artificial intelligence and machine learning to automate and augment various aspects of their businesses. Those who have succeeded and have gaine… Read More
2019-04-15 12:14
Last week, a federal court in Texas refused to enforce a company’s non-compete agreement against four key employees who started a competing business because the agreement was missing… Read More
2019-03-18 12:50
Last week, a famous New York tattoo artist, who’s tattooed the likes of Rhianna, Katy Perry, Miley Cyrus, and Justin Bieber, filed a lawsuit against a former staffer, claiming she bega… Read More
2019-03-14 15:02
The Texas Citizens Participation Act (TCPA), enacted by the legislature in 2011, has been wrecking havoc in business and employment disputes due to the statute’s overbroad language, c… Read More
2019-03-06 17:28
The growth of social media has been raising complex new issues for employers seeking to enforce their non-compete and non-solicitation agreements. For example, if a former employee connect… Read More
2019-02-11 14:07
Over the past two years, the Second, Sixth, and Seventh Circuits have construed Title VII of the Civil Rights Act of 1964 to prohibit employers from discriminating on the basis of… Read More
2019-02-05 16:21
In Part I, I described requirements for non-compete agreements in Texas. In Part II, I describe the common mistakes that employers make when it comes to non-compete agreements:
1. Not… Read More
2019-02-04 13:00
Most states will enforce reasonable non-competition agreements, but what is “reasonable” and how the courts reach that conclusion varies. In Texas, there are some rules of… Read More
2019-01-27 16:17
In Texas, non-compete agreements are generally enforceable if they meet certain requirements. Specifically, they must be: (1) part of an otherwise enforceable agreement, (2) reasonable, and… Read More
2019-01-15 13:30
Exactly a week ago, the Texas Legislature began its bi-annual session during which it will consider and vote on hundreds of bills. Among those are 24 employment-related bills which, if passe… Read More
2019-01-09 15:04
Anyone who has been running a business for a while knows that January is a high turnover month for employees. And while companies cannot prevent employee turnover, they can take four steps&n&hell…Read More
2019-01-07 16:53
I will be presenting with Stanley Santire of Santire Law Firm on the The Rise in Trade Secrets and Restrictive Covenants Litigation on January 17th at 2:30 p.m. at the Texas Bar Advance… Read More
2019-01-05 16:27
A man wants free whoppers for life after getting locked in a Burger King bathroom and he has filed a lawsuit to get them. He claims that a local manager promised to provide him free h… Read More
2018-12-19 17:27
Unlike many other states around the country, Texas did not see any drastic changes in its non-competition laws in 2018. However, out of a 100 + cases involving non-competition disputes… Read More
2018-12-04 15:07
What distinguishes those companies that are successful in enforcing their non-compete agreements from those that are not? Generally speaking, just three “no-brainer” fa… Read More
2018-11-27 17:37
Two and a half years after the Defend Trade Secrets Act (DTSA) became effective, the Fifth Circuit has issued its first opinion addressing the statute. Earlier this month, the Court r… Read More
2018-11-05 16:03
Last week, a Texas Court of Appeals ruled that a non-compete agreement between a transportation logistics broker and its freight carrier was unreasonable because it was not clear when the 24… Read More
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